New York

1-3247

16-0393470

(State or other jurisdiction

(Commission

(I.R.S. Employer

of incorporation)

File Number)

Identification No.)

One Riverfront Plaza, Corning, New York

14831

(Address of principal executive offices)

(Zip Code)

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

•

We will provide separate financial information for the Specialty Materials operating segment. This operating segment was previously included in All Other.

•

Certain later-stage development projects, such as microreactors and green lasers, now meet the criteria for operating segments and are included in All Other. Spending for these projects was previously part of Exploratory Research and was reported in the reconciliation of reportable segment net income to total net income.

•

Certain other new product lines now meet the criteria for operating segments and are included in All Other. Spending related to these businesses, such as EPIC® and VITA™ glass, was previously included in our Life Sciences and Display Technologies operating segments, respectively.

•

Display Technologies – manufactures liquid crystal display glass for flat panel displays.

•

Telecommunications – manufactures optical fiber and cable and hardware and equipment components for the telecommunications industry.

•

Environmental Technologies – manufactures ceramic substrates and filters for automotive and diesel applications. This reportable operating segment is an aggregation of our Automotive and Diesel operating segments as these two segments share similar economic characteristics, products, customer types, production processes and distribution methods.

•

Specialty Materials – manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs.

•

Life Sciences – manufactures glass and plastic consumables for scientific applications.

CORNING INCORPORATED

Registrant

Date: March 31, 2008

By /s/

KATHERINE A. ASBECK

Katherine A. Asbeck

Senior Vice President - Finance

Display
Technologies

Telecom-
munications

Environmental
Technologies

Specialty
Materials

Life
Sciences

All
Other

Total

For the year ended December 31, 2007

Net sales

$

2,613 

$

1,779 

$

757 

$

379 

$

305 

$

27 

$

5,860 

Depreciation (1)

$

325 

$

123 

$

89 

$

32 

$

15 

$

7 

$

591 

Amortization of purchased intangibles

$

10 

$

10 

Research, development and engineering expenses (2)

$

102 

$

82 

$

125 

$

41 

$

8 

$

121 

$

479 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest) (3)

$

(4)

$

(4)

Income tax (provision) benefit

$

(138)

$

(35)

$

(15)

$

(13)

$

8 

$

(193)

Earnings (loss) before minority interest and equity earnings (loss) (4)

$

1,433 

$

115 

$

59 

$

(3)

$

44 

$

(150)

$

1,498 

Minority interests

$

(1)

$

(2)

$

(3)

Equity in earnings (loss) of affiliated companies (5)

$

582 

$

4 

$

2 

$

(9)

$

579 

Net income (loss)

$

2,015 

$

118 

$

61 

$

(3)

$

44 

$

(161)

$

2,074 

Investment in affiliated companies, at equity

$

1,733 

$

19 

$

32 

$

213 

$

1,997 

Segment assets (6)

$

5,853 

$

1,105 

$

853 

$

292 

$

150 

$

235 

$

8,488 

Capital expenditures

$

883 

$

66 

$

67 

$

30 

$

16 

$

3 

$

1,065 

For the year ended December 31, 2006

Net sales

$

2,133 

$

1,729 

$

615 

$

386 

$

287 

$

24 

$

5,174 

Depreciation (1)

$

276 

$

157 

$

80 

$

35 

$

16 

$

6 

$

570 

Amortization of purchased intangibles

$

11 

$

11 

Research, development and engineering expenses (2)

$

101 

$

82 

$

121 

$

36 

$

8 

$

101 

$

449 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest) (3)

$

44 

$

6 

$

6 

$

56 

Income tax (provision) benefit

$

(121)

$

(24)

$

(7)

$

(2)

$

(4)

$

6 

$

(152)

Earnings (loss) before minority interest and equity earnings (loss) (4)

$

1,080 

$

14 

$

9 

$

20 

$

27 

$

(116)

$

1,034 

Minority interests

$

(6)

$

(5)

$

(11)

Equity in earnings (loss) of affiliated companies (5)

$

565 

$

5 

$

(1)

$

39 

$

608 

Net income (loss)

$

1,645 

$

13 

$

8 

$

20 

$

27 

$

(82)

$

1,631 

Investment in affiliated companies, at equity

$

1,382 

$

17 

$

30 

$

328 

$

1,757 

Segment assets (6)

$

4,752 

$

1,153 

$

844 

$

290 

$

143 

$

350 

$

7,532 

Capital expenditures

$

829 

$

67 

$

146 

$

22 

$

21 

$

1,085 

For the year ended December 31, 2005

Net sales

$

1,742 

$

1,623 

$

580 

$

331 

$

282 

$

21 

$

4,579 

Depreciation (1)

$

184 

$

180 

$

70 

$

32 

$

17 

$

7 

$

490 

Amortization of purchased intangibles

$

13 

$

13 

Research, development and engineering expenses (2)

$

104 

$

75 

$

102 

$

28 

$

8 

$

61 

$

378 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest) (3)

$

(48)

$

(7)

$

(8)

$

(63)

Income tax (provision) benefit

$

(123)

$

(10)

$

(5)

$

(3)

$

(9)

$

4 

$

(146)

Earnings (loss) before minority interest and equity earnings (loss) (4)

$

827 

$

67 

$

15 

$

12 

$

28 

$

(59)

$

890 

Minority interests

$

2 

$

(9)

$

(7)

Equity in earnings (loss) of affiliated companies (5)

$

416 

$

5 

$

(76)

$

345 

Net income (loss)

$

1,243 

$

74 

$

15 

$

12 

$

28 

$

(144)

$

1,228 

Investment in affiliated companies, at equity

$

860 

$

11 

$

31 

$

299 

$

1,201 

Segment assets (6)

$

3,626 

$

1,153 

$

726 

$

277 

$

137 

$

321 

$

6,240 

Capital expenditures

$

1,250 

$

43 

$

171 

$

24 

$

17 

$

1 

$

1,506 

(1)

Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment.

(2)

Research, development, and engineering expenses includes direct project spending which is identifiable to a segment.

(3)

In 2006, restructuring, impairment and other charges and (credits) includes a charge of $44 million for certain assets in our Telecommunications segment. In 2005, restructuring, impairment and other charges and (credits) includes a gain of $84 million for the reversal of the cumulative translation account of a wholly-owned subsidiary that was substantially liquidated and a charge of $28 million for a restructuring plan in the Telecommunications segment.

(4)

Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal are allocated to segments, primarily as a percentage of sales.

(5)

Equity in earnings of affiliated companies, net of impairments includes the following restructuring and impairment charges:

•

In 2007, $40 million related to impairments and other charges and credits for Samsung Corning Co. Ltd. is included in All Other.

•

In 2006, gains of $2 million related to impairments and other charges and credits for Samsung Corning Co. Ltd. is included in All Other.

•

In 2005, $106 million to reflect our share of Samsung Corning Co. Ltd.’s asset impairment charges is included in All Other.

(6)

Segment assets include inventory, accounts receivable, property and associated equity companies and cost investments.

Years ended December 31,

2007

2006

2005

Net income of reportable segments

$

2,235 

$

1,713 

$

1,372 

Non-reportable segments

(161)

(82)

(144)

Unallocated amounts:

Net financing income (costs) (1)

36 

1 

(93)

Stock-based compensation expense

(138)

(127)

(37)

Exploratory research

(67)

(57)

(52)

Corporate contributions

(32)

(30)

(24)

Equity in earnings of affiliated companies, net of impairments (2)

363 

352 

266 

Asbestos settlement (3)

(185)

2 

(218)

Other corporate items (4)

99 

83 

(485)

Net income

$

2,150 

$

1,855 

$

585 

(1)

Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans.

(2)

Equity in earnings of affiliated companies, net of impairments represents equity in earnings of Dow Corning Corporation which includes the following items:

•

In 2006, a $33 million gain representing our share of a tax settlement relating to an IRS examination at Dow Corning.

•

In 2005, a gain of $11 million which represents our share of Dow Corning’s gain on the issuance of subsidiary stock.

(3)

In 2007, 2006, and 2005, the asbestos settlement includes a charge of 132 million, a credit of $24 million and a charge of $197 million, respectively, to reflect the movement in Corning’s common stock price in each year and $53 million, $22 million and $21 million, respectively, to adjust the estimated settlement value of the other components of the proposed asbestos settlement. See Note 7 (Investments) to the consolidated financial statements.

(4)

Other corporate items include the tax impact of the unallocated amounts and the following significant items:

•

In 2007, a loss of $15 million from the repurchase of $223 million principal amount of our 6.25% Euro notes due 2010 and a credit of $103 million from the release of a valuation allowance on German tax benefits.

•

In 2006, tax benefits of $83 million from the release of valuation allowances for certain foreign locations.

•

In 2005, an impairment charge of $25 million for the other-than-temporary decline in our investment in Avanex below its cost basis; a loss of $16 million associated with the redemption or retirement of debt; a net $443 million charge to tax expense which included a $525 million increase to our valuation allowance against deferred tax assets resulting from our conclusion that the sale of an appreciated asset no longer met the criteria established by SFAS No. 109, “Accounting for Income Taxes” (SFAS No. 109) for a viable tax planning strategy offset by an $82 million credit to tax expense primarily related to the tax impact of eliminating the minimum pension liability associated with our domestic defined benefit plan.

Years ended December 31,

2007

2006

2005

Total assets of reportable segments

$

8,253

$

7,182

$

5,919

Non-reportable segments

235

350

321

Unallocated amounts:

Current assets (1)

3,808

3,422

2,673

Investments (2)

1,039

765

528

Property, net (3)

981

794

823

Other non-current assets (4)

899

552

943

Total assets

$

15,215

$

13,065

$

11,207

(1)

Includes current corporate assets, primarily cash, short-term investments and deferred taxes.

(2)

Represents corporate investments in affiliated companies, at both cost and equity (primarily Dow Corning Corporation).

(3)

Represents corporate property not specifically identifiable to an operating segment.

(4)

Includes non-current corporate assets, pension assets and deferred taxes.

Display
Technologies

Telecom-
munications

Environmental
Technologies

Specialty
Materials

Life
Sciences

All
Other

Total

For the three months ended March 31, 2007

Net sales

$

524 

$

439 

$

179 

$

84 

$

76 

$

5 

$

1,307 

Depreciation (1)

$

81 

$

33 

$

21 

$

8 

$

4 

$

1 

$

148 

Amortization of purchased intangibles

$

3 

$

3 

Research, development and engineering expenses (2)

$

22 

$

19 

$

30 

$

9 

$

2 

$

26 

$

108 

Income tax (provision) benefit

$

(42)

$

(11)

$

(3)

$

(4)

$

2 

$

(58)

Earnings (loss) before minority interest and equity earnings (loss) (3)

$

273 

$

31 

$

10 

$

10 

$

(32)

$

292 

Equity in earnings (loss) of affiliated companies (4)

$

113 

$

1 

$

9 

$

123 

Net income (loss)

$

386 

$

32 

$

10 

$

10 

$

(23)

$

415 

For the three months ended June 30, 2007

Net sales

$

610 

$

438 

$

191 

$

95 

$

78 

$

6

$

1,418 

Depreciation (1)

$

79 

$

32 

$

22 

$

8 

$

4 

$

2 

$

147 

Amortization of purchased intangibles

$

2 

$

2 

Research, development and engineering expenses (2)

$

22 

$

21 

$

31 

$

13 

$

2 

$

28 

$

117 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest)

$

(2)

(2)

Income tax (provision) benefit

$

(11)

$

(6)

$

(4)

$

(3)

$

2 

$

(22)

Earnings (loss) before minority interest and equity earnings (loss) (3)

$

362 

$

41 

$

13 

$

(2)

$

11 

$

(36)

$

389 

Minority interests

$

(1)

$

(1)

Equity in earnings (loss) of affiliated companies (4)

$

132 

$

1 

$

1 

$

(6)

$

128 

Net income (loss)

$

494 

$

42 

$

14 

$

(2)

$

11 

$

(43)

$

516 

For the three months ended September 30, 2007

Net sales

$

705 

$

472 

$

198 

$

95 

$

78 

$

5 

$

1,553 

Depreciation (1)

$

80 

$

29 

$

23 

$

8 

$

3 

$

2 

$

145 

Amortization of purchased intangibles

$

2 

$

2 

Research, development and engineering expenses (2)

$

28 

$

20 

$

32 

$

10 

$

2 

$

30 

$

122 

Income tax (provision) benefit

$

(39)

$

(18)

$

(8)

$

(6)

$

2 

$

(69)

Earnings (loss) before minority interest and equity earnings (loss) (3)

$

387 

$

32 

$

14 

$

(3)

$

10 

$

(37)

$

403 

Minority interests

$

(1)

$

(1)

Equity in earnings (loss) of affiliated companies (4)

$

160 

$

1 

$

(8)

$

153 

Net income (loss)

$

547 

$

32 

$

14 

$

(3)

$

10 

$

(45)

$

555 

For the three months ended December 31, 2007

Net sales

$

774 

$

430 

$

189 

$

105 

$

73 

$

11 

$

1,582 

Depreciation (1)

$

85 

$

29 

$

23 

$

8 

$

4 

$

2 

$

151 

Amortization of purchased intangibles

$

3 

$

3 

Research, development and engineering expenses (2)

$

30 

$

22 

$

32 

$

9 

$

2 

$

37 

$

132 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest)

$

(2)

$

(2)

Income tax (provision) benefit

$

(46)

$

2 

$

(44)

Earnings (loss) before minority interest and equity earnings (loss) (3)

$

411 

$

11 

$

22 

$

2 

$

13 

$

(45)

$

414 

Minority interests

$

(1)

$

(1)

Equity in earnings (loss) of affiliated companies (4)

$

177 

$

1 

$

1 

$

(4)

$

175 

Net income (loss)

$

588 

$

12 

$

23 

$

2 

$

13 

$

(50)

$

588 

(1)

Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment.

(2)

Research, development, and engineering expenses includes direct project spending which is identifiable to a segment.

(3)

Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal are allocated to segments, primarily as a percentage of sales.

(4)

Equity in earnings of affiliated companies, net of impairments includes the following restructuring and impairment charges:

•

In the second quarter, $15 million related to impairments and other charges for Samsung Corning Co. Ltd. is included in All Other.

•

In the third quarter, $18 million related to impairments and other charges for Samsung Corning Co. Ltd. is included in All Other.

•

In the fourth quarter, net charges of $14 million related to impairments and other charges and credits for Samsung Corning Co. Ltd. is included in All Other.

Three months ended

March 31,
2007

June 30,
2007

Sept. 30,
2007

Dec. 31,
2007

Net income of reportable segments

$

438 

$

559 

$

600 

$

638 

Non-reportable segments

(23)

(43)

(45)

(50)

Unallocated amounts:

Net financing income (1)

8 

10 

10 

8 

Stock-based compensation expense

(36)

(35)

(29)

(38)

Exploratory research

(17)

(16)

(18)

(16)

Corporate contributions

(14)

(6)

(6)

(6)

Equity in earnings of affiliated companies, net of impairments

93 

92 

86 

92 

Asbestos settlement (2)

(110)

(76)

16 

(15)

Other corporate items (3)

(12)

4 

3 

104 

Net income

$

327 

$

489 

$

617 

$

717 

(1)

Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans.

(2)

As part of Corning’s asbestos settlement arrangement to be incorporated into the Pittsburgh Corning Corporation recognizing plan, Corning will contribute, when the reorganization plan becomes effective, 25 million shares of Corning common stock to a trust. This portion of the asbestos liability requires adjustment band upon quarterly movements in Corning’s common stock price prior to contribution of the shares to the trust.

(3)

Other corporate items include the tax impact of the unallocated amounts. In addition, the flowing items are also included:

•

In the first quarter, a loss of $15 million from the repurchase of $223 million principal amount of our 6.25% Euro notes due 2010.

•

In the fourth quarter, a tax benefit of $103 million from the release of a valuation allowance on certain deferred tax assets in Germany.